Fair Trade Sales Buck The Trend

Ahead of World Fair Trade Day on 9th May, this first ever global consumer survey on fair trade shows that shoppers Increasingly expect companies to be more accountable and fair in dealing with producers in developing countries. The survey by GlobeScan was commissioned by Fairtrade Labelling Organizations International (FLO) and showed that almost three quarters of shoppers believe it is not enough for companies to do no harm, but that they should actively support community development in developing countries.

‘Active ethical consumers’ make up more than half the population (55%) in the countries surveyed. These shoppers have higher expectations of companies’ social, economic and environmental responsibilities. Their shopping habits and decisions tend to reward (or punish) companies that meet (or do not meet) their expectations, and they influence others with their opinions.

These attitudes are fuelling support for fair trade as more consumers identify with its values. Half of the public (50%) in the 15 countries surveyed are now familiar with the FAIRTRADE Certification Mark, or in North America the Fair Trade Certified™ label. Of these people, nine out of ten (91%) trust the label, while 64% of all consumers believe that fair trade has strict standards, a quality that also closely correlates to consumer trust. Almost three quarters of shoppers (72%) believe independent certification is the best way to verify a product’s ethical claims.

These levels of awareness and trust are consistent with people’s action, as sales indicators show more people are shopping for fair trade. In these tough economic times, the vast range of fair trade certified goods and wider availability means that consumers can still remain loyal to fair trade even while switching to other brands.

“With the devastating impacts of the global recession and the credit crunch, producers need fair trade now more than ever,” says Rob Cameron, CEO of Fairtrade Labelling Organizations International, the international umbrella organization for Fairtrade. “It is very encouraging that consumer commitment to fair trade remains strong in these challenging times. We are indebted to the grassroots movement who have built up solid support for fair trade. As a result of their efforts, global brands see fair trade as an important part of their strategy for the future. We are working with both the grassroots movement and companies to increase the market, so that more producers will benefit from the better deal that fair trade offers.”

As regards the UK market, nearly half of UK consumers are ethically active with high expectations of corporate responsibility. The UK has the highest level of awareness with 82% of people saying they recognize the FAIRTRADE Mark. Of these people, 94% say they trust the FAIRTRADE Mark. More than three quarters of shoppers, 77%, believe that fair trade has strict standards and again more than three quarters of shoppers, 77%, believe independent certification is the best way to verify a product’s ethical claims. Estimated retail sales of fair trade products in the UK topped £700m in 2008.